October 31, 2022/Cordros Report
EQUITIES
The local bourse resumed the week’s trading on a sour note as profit-taking activities in ETI (-9.6%), INTBREW (-9.8%), and GTCO (-1.7%) weighed on market performance. Accordingly, the All-Share Index declined by 0.2% to 43,839.08 points. Consequently, the Month-to-Date loss increased to -10.6%, while the Year-to-Date gain moderated to +2.6%.
The total volume traded increased by 31.1% to 160.91 million units, valued at NGN3.47 billion, and exchanged in 4,161 deals. TRANSCORP was the most traded stock by volume at 19.04 million units, while SEPLAT was the most traded stock by value at NGN1.32 billion.
Sectoral performance was mixed, as the Banking (-0.8%), Consumer Goods (-0.4%), and Oil & Gas (-0.4%) indices recorded losses, while the Insurance (+0.3%) index was the sole gainer of the day. The Industrial Goods index closed flat.
As measured by market breadth, market sentiment was negative (0.5x) as 17 tickers lost relative to 8 gainers. INTBREW (-9.8%) and LIVESTOCK (-9.7%) topped the losers’ list, while NAHCO (+9.9%) and COURTVILLE (+8.7%) recorded the most significant gains of the day.
CURRENCY
The naira appreciated by 0.4% to NGN443.00/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 133bps to 15.2%, in the absence of any significant inflow into the system.
The Nigerian Treasury bills secondary market traded with mixed sentiments, albeit with a bullish tilt, as the average yield pared by 1bp to 11.0%. Across the curve, the average yield contracted at the short (-1bp), mid (-1bp), and long (-1bp) segments due to mild interest on the 24DTM (-1bp), 192DTM (-1bp), and 318DTM (-2bps) bills, respectively. Similarly, the average yield declined by 1bp to 10.2% in the OMO segment.
Activities in the FGN bond secondary market were bearish, as the average yield expanded by 11bps to 14.4%. Across the benchmark curve, the average yield expanded at the short (+15bps) and mid (+36bps) segments following the sell-offs of the MAR-2024 (+36bps) and APR-2029 (+39bps) bonds, respectively. Conversely, the average yield contracted at the long (-3bps) end as investors’ demanded the MAR-2035 (-35bps) bond.
